The French government has proposed changes to the tax system that could affect thousands of property owners who rent out furnished homes. The reforms aim to reduce the financial benefits of the Non-Professional Furnished Rental (LMNP) regime, which allows landlords to deduct certain costs from their income. The government hopes to save 200 million euros annually and make the tax treatment of different rental types more equal. Nearly a quarter of individual landlords in France (1.37 million out of 6 million property owners who rent out their properties) currently use the LMNP regime, according to official data. One of the key changes involves limiting how much landlords can deduct from their income through amortization, which is the process of spreading the cost of a property over its useful life. Under the new rules, deductions would be capped at 2.5% of the property's value, up to 7,000 euros per year and per tax household. This would significantly reduce the tax benefits available under the LMNP regime. For example, an apartment bought for 200,000 euros would no longer allow a 5,000 euro annual deduction from rental income, which was previously unlimited. The amortization period could also extend to 40 years, compared to an average of 25 years previously. The government also plans to restrict the use of the "amortization reserve," a method that allows landlords to defer tax payments. Under the new rules, this reserve can only be used for half of the deductible profits each year, with a 10-year limit on its use. For tourist rentals under the LMNP, the amortization rate would be further reduced to 1.5% per year, up to a limit of 5,000 euros deducted each year per tax household. The government's reform is intended to "rebalance" the different rental regimes in favor of long-term rental. In cities like Paris, furnished rental has become the majority, with more than 75% of Parisian T2 and T3 rental listings offering already furnished and equipped properties. Loïc Cantin, president of the National Real Estate Federation, said the share of furnished properties has doubled in 15 years in the top 10 French cities. He stated that the fiscal rebalancing was "necessary" and that there is no reason to grant an advantage to one sector rather than another. The government also seeks to "concretize the attractiveness" of the new Jeanbrun device, introduced in February. This allows for amortizing 3.5%, 4.5%, or 5.5% of 80% of the purchase price of a property put up for unfurnished rental, with respective limits of 8,000, 10,000, or 12,000 euros per year. However, the criteria for benefiting from this device are considered complex and even "restrictive" by some actors. The Jeanbrun device has generated about 300 reservations for new homes per month since its launch, compared to about 4,000 expected at the beginning of the year, according to the Federation of Real Estate Developers (FPI). Pascal Boulanger, president of the FPI, criticized the government's approach, stating that the government is "trapping the system" by trimming the LMNP regime instead of enhancing the Jeanbrun device. He noted that the LMNP was the only working device and that the government's response was in the opposite direction. The Jeanbrun device was intended to be enriched in the housing bill, but these measures were not included in the text to be presented in the second reading in November at the National Assembly.